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    Price of existing zero-coupon bonds

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    Assume the following information for existing zero-coupon bonds:
    Par value =$100,000
    Maturity = 3 years
    Required rate of return by investors = 12%

    How much should investors be willing to pay for these bonds?

    © BrainMass Inc. brainmass.com June 3, 2020, 10:53 pm ad1c9bdddf
    https://brainmass.com/business/bond-valuation/price-existing-zero-coupon-bonds-254939

    Solution Summary

    How much investors should pay for an existing zero-coupon bond is determined.

    $2.19

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